Microsoft CEO Steve Ballmer announced on Monday that Office 2013 was “designed from the get-go to be offered as a service.” This caused a bit of confusion among those uninitiated in Microsoft’s approach to “application streaming.” As we discussed in our Office 2013 feature, the suite is tied to the cloud for license tracking, cloud storage, and software updates. But it runs completely from the desktop, which doesn’t match some people’s definition of “streaming.”

The Office 2013 installer is based on Microsoft’s App-V application virtualization technology, including what Microsoft calls “user experience virtualization.” While the Office applications run within Windows and not on some remote machine (as people typically think of application virtualization), they are connected through a Microsoft Office Click-to-Run component (integratedoffice.exe). The downloaded applications are essentially a local cache of functionality piped in from Microsoft's Office365 cloud service; they can run alongside an existing Windows installation without conflict.

Microsoft initially introduced Click-to-Run as an option for Office 2010—through the Professional Plus program of the Office 365 cloud service, as an option for Microsoft Office Home and Student 2010, and for Microsoft Office Home and Business 2010 (when they are downloaded instead of store-purchased), and the Microsoft Office Starter 2010 free trialware. In Office 2010, Click-to-Run used a mapping to a separate virtual file system stored in a "bubble" within the Windows file space; it doesn't use a separate filespace in Office 2013 (at least on Windows 8).

When the 400-kilobyte “Click-to-Run” installer gets downloaded and launched by an Office user from an Office 365 site, it plays an opening video. (This is mostly to buy time for the installer to start pulling down Office components). By the time the install gets past initial user configuration, most of the suite is already functional—but features are still being downloaded in background.

Enlarge/ When everything's been pulled down, the Click-to-Run installer lets you know it's safe to untether from the Internet umbilical.

The user experience virtualization piece is attached to the user’s Office account login; things like dictionary files and other preferences (and the user’s SkyDrive or SharePoint file stores) are up in the cloud. When the user is authenticated on an Office instance (regardless of whether they installed it), it brings in their personalized settings, including their connection to cloud storage and “recent documents” menu.

Streaming also comes into play with software updates. While Office will run without any problem disconnected from the Internet, it checks back in with Microsoft’s cloud service when it does connect for new components. It will upgrade or patch in the background without the user having to intervene.

A pointless DRM scheme that will be bypassed within six months, once again doing nothing but injuring legitimate users.

Why don't companies give up on the idea already? Even the Starforce DRM was cracked in time.

There are non-DRM reasons for using a service-based model for applications. Rapid updating and patching is one. Collaboration and cloud-based services are another.

From a DRM standpoint, keep in mind that a decent chunk of Microsoft's paying customers are large corporations who pay for enterprise licenses. Moreover, some of those corporate customers are in the business of provisioning Office to end-users, e.g. a remote desktop with a pre-installed copy of Office. Microsoft's licensing model is set up in such a fashion that it needs to know how copies are in use at any given time, and for how long.

While corporations could try cracking the DRM, they're unlikely to, as it's a lot easier for Microsoft to sue the pants off of another corporation as opposed to some university student using a cracked copy of Word.

A pointless DRM scheme that will be bypassed within six months, once again doing nothing but injuring legitimate users.

Why don't companies give up on the idea already? Even the Starforce DRM was cracked in time.

I might be misunderstanding the point of this, but isn't the streaming so you can use your office on any Windows PC? So, you're visiting family, have an idea or need to work on something, but they don't have Office - download, "stream," do your thing, and everyone's happy?

A pointless DRM scheme that will be bypassed within six months, once again doing nothing but injuring legitimate users.

Why don't companies give up on the idea already? Even the Starforce DRM was cracked in time.

It's not a DRM scheme, it's an application delivery scheme.

A pretty damn good one. Great to see Microsoft using AppV for things other than making my life as a sysadmin easier.

Also it's perfect sense for something like a beta release as well. The application doesn't touch the underlying OS, leaving any older version of Office fairly intact. Also, you can begin to use many parts of the software before it's done downloading. I've noticed games (notably Rift) are starting to use streaming as well. Begin the download and you can play the game in about 5 minutes on a cable connection.

A pointless DRM scheme that will be bypassed within six months, once again doing nothing but injuring legitimate users.

Why don't companies give up on the idea already? Even the Starforce DRM was cracked in time.

I might be misunderstanding the point of this, but isn't the streaming so you can use your office on any Windows PC? So, you're visiting family, have an idea or need to work on something, but they don't have Office - download, "stream," do your thing, and everyone's happy?

Office will be tied to five devices (well, depending on the version, actually). You can authorize several PCs and cache the applications using the Office setup. Personally I don't like the term "streamed" for this even though it is appropriate. I think many people see "streamed" and think that it'll never hit the hard disk, and if it does it is transient, and even with that once you disconnect from the internet it won't work anymore.

From what I've seen, the internet is only required for an install, updates and collaboration tools. The suite itself does not require one to work.

I love AppV, it's just too bad it's so expensive on the desktop if you don't have software assurance... (if you do it's something ridiculously cheap like $8 per pc for the desktop optimization pack) For the tools you get that is awesome.

Another great part of it being in AppV, if your install goes sideways you should be able to delete your cache and I believe it will just re-download.

Where I work we've bought into the VMWare version (ThinApp), just because SA went out the window to save money...

Sorry, has anyone here actually tried it?! It's amazing, you can have Office up and running and nearly fully functional in 90 sec from running set-up? It was possibly the best installing experience I've ever had, that was without an SSD too!

You lot are a tough bunch to please!

I have noticed that very occasionally there is a little lag once the programs are running, mainly in excel with large data sets, but I don't know if this is due to the streaming or because it is not release software yet.

A pointless DRM scheme that will be bypassed within six months, once again doing nothing but injuring legitimate users.

Why don't companies give up on the idea already? Even the Starforce DRM was cracked in time.

I don't think you seem to understand even a little bit as to what this is. This is the equivalent of streaming a movie over Netflix. While the act of streaming may be DRM in and of itself, it's just a delivery mechanism. If you purchase the product outright you do not need an internet connection everytime you boot up the application.

It sounds very impressive in theory. How does MS transmit the application quickly enough for it to be installed and running within 90-120 seconds? Downloading an update to (Mac) Office takes much longer than on my 50Mb connection. From the description, it sounds a lot like how Valve Steam works, which I've always liked. As long as software companies don't start doing dumb stuff like the DRM depends on constant internet access, I'm very happy for them to get much improved licensing control in return for giving me this kind of flexibility.

It sounds very impressive in theory. How does MS transmit the application quickly enough for it to be installed and running within 90-120 seconds? Downloading an update to (Mac) Office takes much longer than on my 50Mb connection. From the description, it sounds a lot like how Valve Steam works, which I've always liked. As long as software companies don't start doing dumb stuff like the DRM depends on constant internet access, I'm very happy for them to get much improved licensing control in return for giving me this kind of flexibility.

Edit: I meant Valve Steam, not Stream

It appears they download the most important stuff first (basic UI, functionality, etc) and stream in larger bits of the program as you load them. For example, it'd be like if you wanted to play a game. You need the basic blocks (engine, assets for the menu, etc). Let's say the last level is the fire dungeon, but you start off in the forest level. Well, intelligent streaming would mean the artwork for the forest would get to you first.

From my own experience, this was a great way to install. I watch the little opening sequence going "oh god this is crap, why would they make me download this stupid video when what I care about is the programs. Well, the short video ended, I clicked next, and was able to open up OneNote less than a minute after I had clicked "download". That's...impressive. 2 minute in, I had full sync with my online notebooks.

Not sure how the subscription vs. buying will go, price-wise...but as far as actual installation mechanisms go, this is pretty sweet.

Clever, in theory. In practice it utterly failed to work when I tried it.

Hmmm, what OS did you try it on? It worked brilliantly on Win8 x64 Release Preview. They had a very smart gimmick of putting the product tour (while the applications are downloading) in PowerPoint -- it really showed off just how well App-V works.

"But it runs completely from the desktop, which doesn’t match some people’s definition of “streaming.”"

If you uninstall any version of Office from your computer and then go to http://officepreview.microsoft.com/ and log in and click on create a new Word document a plugin warning will appear in Chrome or whatever browser you use and then Word will stream to your computer. The best part is that when you close the program it leave no traces of it behind.

So with this version of Word we have the traditional version, then a true streaming version, and a web based version.

The streaming version does not take up any of your licenses. Also, I believe Microsoft will call this Office to Go and will talk more about it soon.

It sounds very impressive in theory. How does MS transmit the application quickly enough for it to be installed and running within 90-120 seconds? Downloading an update to (Mac) Office takes much longer than on my 50Mb connection. From the description, it sounds a lot like how Valve Steam works, which I've always liked. As long as software companies don't start doing dumb stuff like the DRM depends on constant internet access, I'm very happy for them to get much improved licensing control in return for giving me this kind of flexibility.

Edit: I meant Valve Steam, not Stream

You should try it to see that's not theory talking. I installed mine on a 4 mb internet connection and about 2 minutes later I was ready to use the whole package.

Perhaps this is why MS have not bought OnLive? Because they already have instant play capabilities? (And along with silverlight, instant media delivery techniques?)

Or am I barking up the wrong tree...

No, I was thinking about the same thing. Game delivery is an area where this is greatly needed. (However, this is completely different from what OnLive does, which is run the code on their own machine and just send images and audio to you and receive control inputs from your end.)

One of the big hitches in moving from discs to downloads as the primary distribution means for games is that the AAA titles tend to be quite large, getting into multiple DVDs for the FMV heavy RPGs. For a little indie gem it's not a problem. A couple minutes and its complete, ready to play. But some of those big titles make for a long wait on Steam or XBLA.

This is really annoying for a big XBLA game that you want to check out as a demo before deciding to buy. If you buy, the conversion from demo to purchase is very quick but if you decide it isn't worth getting you had a fair chunk of time tied up in the download. Yes, you can queue up a bunch of stuff to download while you're away or sleeping but impatience is ever an issue in entertainment. We don't only want amusement, we want it NOW.

This form of streaming is the answer. There is no good reason you should have to wait more than a few minutes before playing when much of the download is content you cannot benefit from having locally until several hours into the game.

It sounds very impressive in theory. How does MS transmit the application quickly enough for it to be installed and running within 90-120 seconds? Downloading an update to (Mac) Office takes much longer than on my 50Mb connection. From the description, it sounds a lot like how Valve Steam works, which I've always liked. As long as software companies don't start doing dumb stuff like the DRM depends on constant internet access, I'm very happy for them to get much improved licensing control in return for giving me this kind of flexibility.

Edit: I meant Valve Steam, not Stream

There are two things happening here.

First, they done a lot of modeling on how the actual files are accessed on a new Office install and prioritized which ones are needed to get the appearance of Office going. Massive chunks of an app can be yet to be installed but in the time it would take you get to where that piece of code is needed, it should have come across or will be there with little delay.

It also means they had to change the methodology of how the apps look at themselves and determine their integrity. And have on the fly prioritization so that it can shift from downloading stuff that isn't in use yet to the pieces needed for the function you just selected.

The second is like a lot of stage magic. They delay with flourishes and draw your attention where they want it. Most notable are the video that introduces you to Office and their pushing the user to watch a presentation in PowerPoint. This means they know to prioritize the Portions of PowerPoint needed for the presentation while leaving other portions for later.

These tactics buy them a lot of time in a way the user doesn't notice because they're engaged rather than impatiently watching a progress bar. If you have to do a bunch of installs in a situation that doesn't justify automation the time it takes will become more noticeable.

It also helps that this is only for Windows 7 and Windows 8. The vast majority of installs for those operating systems are on systems with at least dual cores and other factors to ensure a minimal level of performance. There will be complaints from those with severely underpowered systems but that has always been a issue.

I'm a little distrubed about this whole method of delivery. What happens if you have PC's that do not have an internet connection at all? (say in a secured lab) How could any of the apps "stream" the necessary data to the programs? What happens if you're disconnected (airplane possibly) and try to use a function that hasn't "streamed" yet?

All of this deeply disturbs me on many other levels as well. What if i don't WANT my dictionary files or any other personal data in the cloud (which I don't)? Are there alternatives?

It's a streaming installer that will install the whole Office suite on your computer so you can also use it offline. There is a true streaming version but that hasn't been fully detailed by Microsoft yet called Office to Go or Office on Demand. And it comes with Office 365 that lets you stream Office to a computer that may not have it.

This is classic Microsoft here. Where they explain about 75% of a product when they announce it. An Office 365 subscription gives you the full version of Office on your computer (up to five computers) and access to a streamed version from any Windows computer via the Web. There is also a version of Office that will works like all previous version where you sit there while it installs but no Office on Demand.

I'm a little distrubed about this whole method of delivery. What happens if you have PC's that do not have an internet connection at all? (say in a secured lab) How could any of the apps "stream" the necessary data to the programs? What happens if you're disconnected (airplane possibly) and try to use a function that hasn't "streamed" yet?

All of this deeply disturbs me on many other levels as well. What if i don't WANT my dictionary files or any other personal data in the cloud (which I don't)? Are there alternatives?

From what I understand, the streaming function is available for users WHO WILL USE IT. The basic installation methods (i.e., disc) will still be available for those that are in a non-connected secure situation like the one you described.

Of course, if you require the "stream" to your mobile device or in another location, your license allows you to access that, so it's not like MS is condemning those w/o an internet connection.

Strange feature. As soon as I started the install, it promptly said office is ready to use, but kept installing in the background. When I went to run things they were incredibly slow or failed due to component not registered errors. Finally just went off for a coffee and let it finish installing properly, then things seemed to work ok.

From what I understand, the streaming function is available for users WHO WILL USE IT. The basic installation methods (i.e., disc) will still be available for those that are in a non-connected secure situation like the one you described.

Of course, if you require the "stream" to your mobile device or in another location, your license allows you to access that, so it's not like MS is condemning those w/o an internet connection.

I guess we will just have to wait and see. I saw no such option for the preview, even though I chose the enterprise level preview.. Hopefully you are correct about the final product. But do you know if the full install (i.e. disc) still want a cloud account setup or will that be optional at that point?

Sean Gallagher / Sean is Ars Technica's IT Editor. A former Navy officer, systems administrator, and network systems integrator with 20 years of IT journalism experience, he lives and works in Baltimore, Maryland.